Hey Terry,
Sure I'll play superstar for one post and share with you the way I identify big-time stocks. Just keep in mind that "superstar" here hasn't made the big-time himself yet! So buyer beware!
First of all, you write: Obviously, you are not adverse to buying non-reporting companies.
You may think I'm joking, but the lesson of only buying companies that are reporting is one I learned only after I had bought my Pacel shares! The story is that a few weeks ago I was swapping PMs with someone who has played the market much more than I. I came to respect him a lot and one of his rules (learned from experience, I might add) was never buy a stock that is not from a reporting company. The only exception to this might be if you are darn sure you are not investing in a scam. In short, there must be some truly legitimate reason the company has not filed yet, but be very, very careful.
So, applying this to Pacel... If I could go back in time, I would have 1.) learned about Pacel through Top Dog newsletter, 2.) noticed they were not reporting, 3.) done my online DD, 4.) bought only a morsel of shares to constitute a trial balloon and lock it on my radar, 5.) meet with Calkins (since I live close), 6.) buy a bunch more shares, 7.) read the 10SB when it comes out, and finally, 8.) buy the rest of my shares pending a decent 10SB.
Note that another tip from my newfound teacher was: (this is a paste from a PM), "Also, be wary of Nevada corporations, Colorado corporations, and (especially) Canadian companies. If you invest of one, it should be BIG (like BCICF) or very verily verified."
Moving on...
Do you have a gameplan for identifying, screening, etc. stocks?
There are many "Coffee House" type threads on SI that I know of, and there are newsletters people send me, so it is easy for me to get a list of what others think are hot stocks. Where I go from there, though, is something of a mystery to me. I just "feel" a certain way about a stock. I'll read the thread, I'll check out the "mood" of the thread (unscientific, I know), apply my own opinions and logic, and basically form an impression.
When I get a very strong vibe, I have to tell you my batting average is very high. As I mentioned in my earlier post, though, my execution style has been horrific. I would identify the Winner, but exit my position figuring "well, no news is due for a while--I'll exit for now, ride a hot play, and then come back with more money." Lousy, lousy theory. Didn't work for me at all. Who knows when the Big Mo will hit? It could come anytime for a truly good stock. You just got to identify the stock and stick with it until the plan comes through (or clear signs emerge that the plan will not come through).
...do you use a trading program that identifies high volume stocks for shorter term trades?
I don't have a trading program. I sometimes learn about a stock only because it had a huge up-day in price (ex: up 100% in one day), but those tickers tend to show up on the Coffee House threads anyway, so I defer to the Coffee House idea as a somewhat decent way to find out what people think is hot. The best way, I think, is to find someone you respect and trust and ask him/her what they are invested in.
What do the most sophisticated penny stock investors you know do?
You are going to laugh: In my opinion, once somebody becomes a sophisticated and super-successful pennystock player...they lose interest in the penny stock market! Strange answer, I know, and it's only my opinion, but they take all their millions and play the big board exchanges where their money can best be handled.
And, finally, the most important point of all (well, sort of): Be careful inviting a person who has a problem keeping his posts short to give an opinion on something!! LOL! He will just ramble on and on like I have done!
Hey, seriously, this was a lot of fun. Hope it helps.
Chris |
